Financial Vocabulary

#401

Tax

Example sentences

1. She pays tax on her salary.
2. The government uses tax money for public services.
3. The store added tax to the final price.

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#402

Taxable income

Example sentences

1. His taxable income was lower after deductions.
2. Taxable income is used to calculate the tax bill.
3. She reported all taxable income on the return.

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#403

Tax bracket

Example sentences

1. Her higher salary moved part of her income into a new tax bracket.
2. Each tax bracket has its own rate.
3. He checked his tax bracket before planning a bonus.

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#404

Marginal tax rate

Example sentences

1. Her marginal tax rate is 22%.
2. The marginal tax rate applies to the next dollar of income.
3. A higher income may raise the marginal tax rate.

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#405

Effective tax rate

Example sentences

1. His effective tax rate was 15% last year.
2. The effective tax rate compares total tax with total income.
3. Deductions lowered the company's effective tax rate.

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#406

Tax deduction

Example sentences

1. The business claimed a tax deduction for office rent.
2. A tax deduction reduces taxable income.
3. She kept receipts to support the tax deduction.

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#407

Tax credit

Example sentences

1. The family received a tax credit for childcare costs.
2. A tax credit directly reduces the tax owed.
3. He checked whether he qualified for the tax credit.

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#408

Tax exemption

Example sentences

1. The organization received a tax exemption.
2. A tax exemption means some income or property is not taxed.
3. She applied for a tax exemption on the form.

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#409

Tax liability

Example sentences

1. The company paid its full tax liability.
2. A tax credit reduced her tax liability.
3. The accountant estimated the year's tax liability.

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#410

Tax return

Example sentences

1. He filed his tax return online.
2. The tax return lists income and deductions.
3. She asked an accountant to check the tax return.

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#411

Withholding tax

Example sentences

1. The employer takes withholding tax from each paycheck.
2. Withholding tax is sent to the government during the year.
3. She changed her withholding tax information after marriage.

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#412

Payroll tax

Example sentences

1. The employer pays payroll tax for its workers.
2. Payroll tax is connected to employee wages.
3. The accountant calculated the monthly payroll tax.

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#413

Income tax

Example sentences

1. He pays income tax on his earnings.
2. The government changed the income tax rate.
3. She saved money for her annual income tax bill.

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#414

Capital gains tax

Example sentences

1. She paid capital gains tax after selling shares for a profit.
2. Capital gains tax may depend on how long the asset was held.
3. The investor considered capital gains tax before selling.

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#415

Corporate tax

Example sentences

1. The company paid corporate tax on its profit.
2. A lower corporate tax rate may attract businesses.
3. The finance team estimated the corporate tax expense.

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#416

Sales tax

Example sentences

1. The store added sales tax to the purchase.
2. Sales tax is collected when certain goods are sold.
3. The sales tax rate differs between states.

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#417

Value-added tax

Example sentences

1. The price includes value-added tax.
2. Businesses collect value-added tax for the government.
3. The company listed value-added tax on the invoice.

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#418

Excise tax

Example sentences

1. The government placed an excise tax on fuel.
2. An excise tax can increase the price of certain products.
3. The company paid excise tax on imported goods.

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#419

Estate tax

Example sentences

1. The large estate may owe estate tax.
2. Estate tax is charged before some property passes to heirs.
3. The lawyer explained the estate tax rules.

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#420

Gift tax

Example sentences

1. A very large gift may create gift tax.
2. She asked whether the transfer was subject to gift tax.
3. The donor filed a gift tax form.

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